Agreement for the Settlement of the War Debt of 
Portugal to Great Britain. 
Wusreas the Government of the Portuguese Republic (herein- 
after called Portugal) stand indebted to His Majesty's Government 
in Great Britain (hereinafter called Great Britain) for the sum of 
£283,527.186 represented by Portuguese sterling Treasury Bills held 
by His Majesty's Treasury ; 
And whereas the two Governments, animated by the close ties 
of friendship which have for many years bound together their 
respective countries, desire to arrive at an Agreement for the 
funding of this debt on terms compatible with the financial capacity 
of Portugal : 
Now, therefore, the Right Hon. Winston Leonard Spencer 
Churchill, Chancellor of the Exchequer of Great Britain, and His 
Excellency General Jofio José Sinel de Cordes, Finance Minister of 
Portugal, duly authorised thereunto by their respective Govern- 
ments, subject to such ratification as may be required, have agreed 
as follows -— 
1. Great Britain agrees to cancel Portuguese Treasury Bills in 
respect of the sum of £8,898,597 in consideration of the services 
and supplies rendered by Portugal to Great Britain during the war 
free of charge and in settlement of all outstanding claims in 
sonnection with the accounts relating to the War Debt. 
2. In full and final settlement of the balance of the Portuguese 
War Debt, amounting to £20,188,589, Portugal agrees to pay and 
Great Britain to accept the following annuities :— 
For the year 1926 
For the year 1927 
For the year 1928 ... ce he 
For the years 1929 to 1938 inclusive 
For the years 1989 to 1987 inclusive 
For the vear 1988 
£ 
125,000 
250,000 
300,000 
350,000 a year. 
400,000 a year. 
200. COO 
The above payments will be made in sterling at the Bank of 
England, London, in equal half-yearly instalments on the 15th 
June and the 15th December of each year, save that the payment 
for 1926 will be made in full on or before the 25th Jannary, 1927, 
and the payment for 1988 will be made in full on the 15th June, 
1988. 
3. Portugal will issue and deliver to the British Treasury on or 
before the 81st January, 1927, a Bond substantially in the form 
set out in the annex to this Agreement in respect of each of the 
instalments provided for by Article 2 of this Agreement, excepting 
the instalment for 1926, which is payable immediately. 
4. The payments due under such Bonds shall be made without 
deduction for and shall be exempt from any and all taxes and other 
public dues, present or future, imposed by or under authority of 
Portugal or anv political or local taxing authority within Portugal.